My small business which became a victim of late paying customers.

I used to run a small business which became a victim of late paying customers, a problem which became so bad it ultimately forced the closure of my company. My bank manager at the time told me it would make me a stronger business person in the long run, which was not helpful at a time when I could have done with a bit more help and support before the issue became a major problem for my business.



I like many small business owners just do not realise how big a problem is until it is too late.



I dusted myself down and decided to start up again with the bank managers words of wisdom ringing in my ears. I vowed I would retain as much cash within the business as possible and be more proactive in dealing with the company’s debtors.



This philosophy served me well for several years and I was able to build a small but strong business serving well known customers and not being beholden to the banks for support.



Unfortunately, during the present economic crisis, whilst late payment is still a major issue for businesses as cash is harder to obtain, more and more businesses are resorting to other methods of squeezing their already hard pressed suppliers by,



1) Using late payment as a way of funding their own cash flow.



2) Demanding discounts on already agreed prices.



3) Demanding settlement discounts on already agreed prices.



4) Imposing retrospective discounts on goods already delivered.



5) Cancelling orders for goods already manufactured but not delivered.



6) Forcing extended credit terms on suppliers.



All of my major customers are demanding substantial discounts or extended credit terms; some suppliers are also imposing non negotiable discounts on us on top of the huge increases in energy bills. It does not take a genius to work out the massive impact this will have on our profitability and survival.

If a small well run business eventually runs in to trouble, what hope is there for less well managed companies? The burning issue with me is that larger companies hide behind a veil of anonymity when conducting these dubious business practices. No one other than the incumbent suppliers knows that a particular company is abusing its suppliers.

I have just launched an internet based company www.due2pay.co.uk to help businesses secure payment for undisputed overdue invoices before it has a terminal effect on their cash flow. If the invoice is not paid direct to the supplier, after a request from DUE2PAY, details of late paying companies will appear on our site. This information will then be made available to the wider business community allowing a bit of transparency into which these late paying companies are and giving suppliers more up to date information when they are making decisions on whether to deal with a particular company. We do not intend to replace normal debt recovery and business debt collection agencies which are well established methods. We are a powerful addition to the whole process, we offer the chance for suppliers to speak with each other.

When debts are listed on our site, (debts must not be disputed) two major things happen. The customer is emailed and faxed asking for payment, you can have it sent to the buyer and the MD if you wish. Only when they don't pay (after 14 days) will the information go live. To be fair to the late payer he has has the option to mark the debt as disputed as there could be geniune reasons which have not reached the seller. Only the seller and the buyer see the amounts involved, other members do not see the amounts involved. The site is purely factual 'someone is paying invoices late', there is no opportunity for free text. Member details are anonymous on the site. Members may if they wish exchange contact details through the site message system.

We do not take a commission of invoices, we do not enter into negotiations, and we insist that any invoice listed is not in dispute.

If you would like to know more please contact me on 07740708174 or email to info@due2pay.co.uk and I would be more than happy to discuss our company with you. www.due2pay.co.uk



Kind regards,



Colyn Stevenson

Financial Help for Businessmen

Lack of money means a loss of opportunities for a businessman. Business is a game, a gamble where you can achieve the most of you make full use of opportunities. A mismatch in the cash flow may spoil the earnings of a business. So to overcome such problems, the businessman can take up business cash flow loans.

Business cash flow loans prove to be very important for the borrowers as the business may require a good flow of cash and if the businessman is not able to provide that, the business may lose out on its viability. So in such a situation, the businessman can take up business cash flow loans to act as a bridge for such cash-less situations.

Business cash flow loans are a kind of secured loans which are borrowed for a very short term of repayment. The borrower can use this money for any business requirements like paying the labour, buying raw material, getting franchises, buying new machines etc. any such needs, and new contracts can be signed with the help of business cash flow loans.

To avail business cash flow loans, the borrower can take up an amount which depends upon how much equity the asset of the borrower holds. Any asset of the businessman can be pledged, like his house, real estate, raw material, stocks and bonds etc. If the equity is high, a higher amount can be availed by the borrower. The repayment term of business cash flow loans is up to 2 years.

The best way to reduce the higher rates charged due to short term nature of the loan, is to undertake a research online. This way the borrower can compare all business cash flow loan deals available and then single out the most beneficial deal. Online research also makes available loan deals to bad credit borrowers at low rates.

Business cash flow loans act as a bridge between the cashless situations of the borrowers. This way the businessman can save himself from losses easily